KMUD radio station in fiscal crisis, needs donations

After 25 years in operation, the non-profit KMUD radio station is facing financial ruin due to some "wishful thinking" by its board of directors.

KMUD radio, which is owned by Redwood Community Radio, is a station offering news, music, talk shows and more on 91.1 FM in Garberville, 99.5 FM in Shelter Cove, 88.1 FM in Eureka and 90.3 FM in Laytonville. The radio station is in need of about $100,000 just to make it from now to the end of October, when the station's big pledge drive begins, according to KMUD officials.

RCR Board of Directors President Rob Bier said the non-profit realized it was in hot water about three weeks ago, when a new pair of eyes looked at the station's finances.

"She took a look at the situation and told us we didn't have enough cash," Bier said.

He said most of the problem revolves around the station's signal upgrade program. Earlier this year, the board approved upgrading transmitters in Kneeland and Garberville and a translator in Shelter Cove. The station used a Corporation for Public Broadcasting grant to move forward with updating the systems for high-definition coverage, failing to properly identify a source of funding for the required matching funds.

"In retrospect, we made a mistake. We believed we had the financing," Bier said. "We the board engaged in too much wishful thinking and poor planning."

In addition, the station faced grant and FCC construction permit deadlines that necessitated swift action. If KMUD had not acted in time, Bier said, the station would've lost the grant and possibly its FCC license -- which would've expired in March. These issues were compounded by the cost of upgrading the Eureka station's signal: About $60,000 more than anticipated, according to KMUD's website.

Bier said the station made the mistake of doing things out of order.

"We put improvements in place before asking our listeners for funding," Bier said.

The station was barely able to pay its nine employees Tuesday, forgoing payments to some of its creditors. Bier said it's important to the station that it doesn't lay off any staff.

"There are no good choices here. We're calling those creditors up and explaining the situation to them," Bier said.

KMUD is in the process of getting its fundraising efforts off the ground. An all-day on-air pledge drive will take place Aug. 15, as will a barbecue at the station starting at 4 p.m. at 1144 Redway Dr. in Redway. Bier said listeners are encouraged to donate funds and their time to the station.

The Kneeland transmitter has already been completed, putting out 10,000 watts instead of 1,250 watts. Bier said the equipment to upgrade the other two systems has been ordered, and those will be updated soon.

"It's much cleaner and a lot more reliable," Bier said about the high-definition systems.